The War Service Homes Commissioner has forwarded the file relating to an application for an advance to discharge a mortgage on two semi-detached cottages and has requested advice as to whether such an advance may be made under the War Service Homes Act 1918-1919.

It appears from the file that the land and cottages are valued at £1070 and that the applicant has paid £500 and desires an advance of £575 to free the land.

It also appears that the applicant occupies one cottage and desires to let the other.

Section 20 of the War Service Homes Act 1918-1919 provides, inter alia, that, subject to the Act, the Commissioner may make an advance to an eligible person on the prescribed security for the purpose of enabling him to discharge any mortgage, charge or encumbrance already existing on his holding.

The word 'holding' is defined by section 4 of the Act as meaning land of which an applicant or borrower is the beneficial owner in fee simple.

The word 'owner' is defined to include every person who has purchased land on credit or deferred payment, and has obtained possession of the land and has paid at least fifteen per centum of the purchase money.

There is, therefore, I think, no doubt that the property in question is a holding within the meaning of the Act, and therefore a proper subject for an advance under paragraph (f) of section 20 of the Act.

Section 23 of the Act, however, provides as follows:

23. No advance shall be made to any applicant unless the Commissioner is satisfied that-

1. the dwelling-house in respect or for the purposes of which the advance is applied for is intended to be used by the applicant as a home for himself and his dependants; and
2. neither the applicant nor his wife (if any) is the owner of any other dwelling-house.

In the present case there are two houses on the holding, one of which only is intended to be used as a home for the applicant and his dependants, the other to be let to other persons. Whilst, therefore, the applicant complies with paragraph

1. of section 23 as to occupancy of one house, he fails, in my opinion, to comply with that condition as regards the other.

As the applicant fails to comply with the provisions of paragraph (a) of section 23, he is, I think, ineligible to receive an advance in respect of the houses in question, and it is unnecessary, therefore, to consider the application of paragraph

2. of section 23 to this case.

In my opinion, therefore, an advance cannot be made under section 20 of the War Service Homes Act 1918-1919 to enable an applicant to discharge a mortgage on two semi-detached cottages.

[Vol. 16, p. 323]